DGRO vs VYM

Portfolio characteristics

DGRO’s P/E (25.44) and P/B (4.13) are dated Nov 5 and VYM’s (19.5x, 3.0x) Sep 30, so they are not matched. DGRO’s 52-week range is a NAV range; VYM’s is a price range. VYM’s $83.3B is ETF Central’s net-asset figure for Nov 2; Vanguard’s fact sheet shows $78.9B for the ETF share class at Sep 30 and $95.8B for the whole fund. VYM’s SEC yield, spread, premium or discount, shares outstanding and NAV were not captured.

Top ten sums: DGRO 27.43% · VYM 26.2%. Six stocks appear in both top-ten lists. Weights change.

The sector mirror

Same funds, different lenses

Company size

DGRO (iShares): a list of 391 large and mid-sized U.S. companies; market-cap bands were not captured. VYM (Vanguard, Sep 30): median market capitalization $171.0B. Both funds hold large, established U.S. companies almost entirely, and VYM adds many smaller names across its 593 holdings.

What you actually own

Average annual: iShares and Vanguard, Sep 30, 2026. “Since inception” starts in different years (DGRO 2014, VYM 2006), so do not compare those two columns. After-tax returns for DGRO use iShares’ highest historical federal rates; Vanguard’s fact sheet does not show them. Calendar years: DGRO from iShares, VYM from TotalRealReturns. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Quarterly payouts per share, newest first

Single payouts are noisy; a four-quarter comparison is steadier. Computed from the distribution tables above.

Rank by rank, the ten largest positions of each fund. DGRO: ETF Central (Aug 31). VYM: Vanguard (Sep 30). Top five: DGRO 15.7%, VYM 18.2%. Top ten: DGRO 27.4%, VYM 26.2%.

Both trade on NYSE Arca. A spread of 0.01% is about $10 between the buy and sell price on $100,000. VYM’s spread, premium or discount and share count were not captured for this page, so check them on Vanguard’s fund page before placing a large trade. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. DGRO’s 0.08% is from iShares; VYM’s 0.04% is from Vanguard’s most recent prospectus.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

The two funds end up with similar yields and sectors by different routes. DGRO’s index drops the highest-yielding decile of eligible stocks, then screens on dividend growth and payout ratio and weights by dividends paid, which flattens its top ten and adds staples, health care and utilities. VYM holds every U.S. stock with an above-average forecast yield, weighted by market size, which gives 593 holdings and more energy, industrials and communication.

The return pattern is close and flips with the window. DGRO led over 1 year (12.95% vs 12.72%) and 10 years (13.16% vs 11.28%), while VYM led over 3 years (17.67% vs 17.57%) and 5 years (11.63% vs 10.96%). Calendar years split two apiece from 2022 to 2025. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a higher yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with what separates them. Cost favors VYM by 0.04 points, or $4 a year on $10,000. Trailing yield also leans to VYM: 2.24% against 1.98%, which on a $100,000 balance implies roughly $2,240 a year against $1,980 at those yields before taxes, if yields held (they change, and the dates differ). A dividend-growth screen, a lower measured standard deviation and more defensive sectors favor DGRO. Breadth favors VYM: 593 stocks against 391.

Then check what you already own. Six top-ten stocks are shared and sector weights overlap by about 86%, so holding both mostly doubles up. If you already hold a broad U.S. fund such as VOO or VTI, either fund adds only a modest dividend tilt.

• Step 1 · Goal: a dividend-growth screen and defensive tilt (DGRO) or a cheaper, wider high-yield list (VYM).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept more staples, health care and utilities (DGRO) or more energy and industrials (VYM).
• Step 4 · Cost: VYM saves $4 a year per $10,000, which is small next to differences in sector mix.
• Step 5 · Account: consider how dividends are taxed in your account type.

Most investors would pick one rather than both. For other comparisons, VIG vs DGRO and SCHD vs DGRO show how DGRO sits against other dividend funds. Size the position against your whole portfolio.

DGRO and VYM are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because VYM yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional.

Both funds invest in U.S. stocks and pay quarterly. VYM’s turnover is low (11.3% in its latest fiscal year), which usually limits taxable distributions; DGRO’s turnover is about 31% (undated, from MutualFunds.com). Capital gains distribution history was not captured for either fund. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

iShares’ after-tax return for DGRO to Sep 30, 2026 was 12.40% over one year before selling shares and 8.03% after selling; Vanguard’s fact sheet does not show an equivalent for VYM. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing DGRO and VYM often also look at Vanguard Dividend Appreciation (VIG), Schwab U.S. Dividend Equity (SCHD), iShares Core High Dividend (HDV) and ProShares S&P 500 Dividend Aristocrats (NOBL). See VIG vs DGRO, SCHD vs DGRO, SCHD vs VYM and VIG vs VYM. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is DGRO or VYM better?

Neither is better for everyone. They are close: DGRO led over 1 and 10 years to Sep 30, 2026 and VYM over 3 and 5, and each led two of the last four calendar years. VYM costs half as much (0.04% against 0.08%) and holds 593 stocks against 391; DGRO adds dividend-growth and payout screens and more defensive sectors.

Which pays the higher dividend yield, DGRO or VYM?

VYM on trailing yield: 2.24% (ETF Central, Nov 2, 2026) against 1.98% for DGRO (Sep 30). DGRO’s 30-day SEC yield was 2.07% on Sep 30; VYM’s SEC yield was not captured. The dates differ, so treat the gap as approximate. VYM pays more dollars per share only because its share price is higher.

What are the expense ratios of DGRO and VYM?

DGRO’s expense ratio is 0.08%, or $8 a year per $10,000. VYM’s is 0.04% per Vanguard’s most recent prospectus, or $4 a year per $10,000.

How much do DGRO and VYM overlap?

Six stocks appear in both top-ten lists: JPMorgan Chase, Johnson & Johnson, AbbVie, Exxon Mobil, Broadcom and Merck. By this page’s own sector arithmetic, the two funds overlap about 86% by sector weight. A fund-level weight overlap was not captured.

What index does each ETF track?

DGRO tracks the Morningstar US Dividend Growth Index. VYM tracks the FTSE High Dividend Yield Index. Both are passive, quarterly-paying U.S. dividend funds listed on NYSE Arca.

What are the top holdings of DGRO and VYM?

DGRO’s largest positions on Aug 31, 2026 were Microsoft (3.50%), JPMorgan Chase (3.17%), Johnson & Johnson (3.14%), AbbVie (2.99%) and Exxon Mobil (2.94%). VYM’s largest on Sep 30, 2026 were Broadcom (6.9%), JPMorgan Chase (3.8%), Exxon Mobil (2.8%), Johnson & Johnson (2.7%) and AbbVie (2.0%).

Which has performed better, DGRO or VYM?

It depends on the window. To Sep 30, 2026 DGRO led over 1 year (12.95% vs 12.72%) and 10 years (13.16% vs 11.28%), and VYM led over 3 years (17.67% vs 17.57%) and 5 years (11.63% vs 10.96%), annualized on NAV. Calendar years 2022 to 2025 split two apiece. Past performance does not guarantee future results.

Which grew its dividend faster?

DGRO’s last four payouts total $1.494 per share, about 8.1% above the prior four. VYM’s last four total $3.676, about 4.5% above the prior four. Short windows are noisy and past growth does not guarantee future growth.

How do DGRO and VYM differ by sector?

DGRO (Nov 5, 2026) was 19.5% financials, 17.9% health care, 16.7% technology and 13.1% consumer staples, with 7.3% in utilities and 5.3% in energy. VYM (Sep 30, 2026) was 20.4% financials, 14.3% technology, 13.6% industrials and 13.4% health care, with 10.1% in energy and 5.4% in utilities.

Can I own both DGRO and VYM?

You can, but they share six top-ten stocks and overlap by about 86% by sector weight, so owning both mostly repeats your exposure. Check your combined overlap with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, DGRO or VYM?

DGRO’s three-year standard deviation was 10.45% against 11.11% for VYM at Sep 30, 2026, and DGRO’s beta was 0.67. Drawdowns were reported for different periods: about 35.1% for DGRO in March 2020 (Mezzi) and 14.4% for VYM over three years (ETF Central), so do not compare those two figures.

Are DGRO and VYM suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

ETF Central · StockAnalysis · TotalRealReturns · ETF Central (DGRO holdings).

Methodology and limits

• DGRO figures come from iShares (Nov 5–6 and Sep 30, 2026). VYM figures come from Vanguard’s fact sheet (Sep 30, 2026) and ETF Central (Nov 2–3, 2026).
• Top-ten holdings are ETF Central (Aug 31) for DGRO, summed from published weights, and Vanguard (Sep 30) for VYM, so dates differ by about four weeks. DGRO sector weights are Nov 5, VYM’s are Sep 30.
• Sector overlap of 86% is this page’s sum of the smaller sector weight in each fund. Fund-level weight overlap, daily-move correlation, VYM SEC yield, spread, premium or discount, shares outstanding and capital gains history were not captured.
• Calendar-year returns for DGRO (iShares NAV) and VYM (TotalRealReturns, nominal, dividends reinvested) come from two sources.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns: DGRO is Mezzi’s March 2020 figure; VYM is ETF Central’s three-year maximum drawdown. They cover different periods and are third party.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.